What is the best estimate of any theft that has occurred

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Problem 1: A company counts its inventory and arrives at a current total of $167,000. The company accountant fears that some merchandise has been stolen and seeks to estimate the amount of this loss. Sales for the period have been $600,000. Gross profit is set by the company at a standard 40 percent of the sales price. According to the ledger balances, inventory on the first day of the year was $150,000 and purchases of $390,000 have been made during the period. What is the best estimate of any theft that has occurred?

Option 1: $10,000

Option 2: $13,000

Option 3: $18,000

Option 4: $15,000

Reference no: EM132823607

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